MASTER OF BUSINESS ADMINISTRATION

HCBA 3101: CONTEMPORARY MANAGEMENT

LECTURE 1: BACKGROUND OF MANAGEMENT

What is management?
The term management can be defined in the following ways:
1. As a group of people whose job is to direct the efforts of others in the organization
towards the attainment of the organizations objective
2. Management as a process refers to the process by which management directs actions in
the organization towards the achievement of organizations goals through the functions
of planning, organizing, controlling, staffing and so on.
3. Economists define management as a resource or as one of the factors of production
together with capital, land, labor and entrepreneurship. In this context management is
bought and developed so as to increase the firms productivity and profitability.
4. Organization theorists view management as a system of authority. Management in this
approach is defined in terms of the rank and position it occupies in the hierarchy of an
administrative system. Management occupies a certain position in this administrative
hierarchy and plays a certain role in the system with regard to decision making, control
and other aspects of the organization.
5. Sociologists view management as a class and status in the social system. In a social
system management occupies a certain position. Entrance to this position in the social
system is based more and more on education and knowledge and ability to analyze
organizational issues and make good decision.
Management theory
Management theory means a theory about management. It is a body of knowledge created
through scientific (systematic) method. It consists of principles and concepts. These concepts and
principles have been determined through observation of events and facts and has established
causal relationships and associations of the events and facts. Where these associations and
relationships have been established to be true after long periods of observation and association
the principles are given and are used to predict what can happen in similar circumstances.
Principles could be descriptive prescriptive or normative. Descriptive principles describe
relationships between variables. Prescriptive (or normative) principles recommend or propose
what should be done to achieve certain results. Management principles are prescriptive because
they propose what should be done to achieve organizations objectives. Therefore management
theory is a body of knowledge created or developed through a method of science and consists of
principles and concepts that advise management on the things that should be done about
organizations so as to achieve desired results.
Many scholars and managers have found that the functions of management are facilitated by the
existence of clear organization knowledge. This knowledge (or management theory) consists of
concepts, principles and variables and their relationships. This body of knowledge has been
created, developed, used and tested for many years. The process of creating, developing, using

and testing this theory or knowledge continues today. The managers of today use the theory to
perform his management functions. The main functions of a manager are:
1. Planning
2. Organizing
3. Staffing or the human resources management
4. Leading
5. Controlling
The goals of managers and organizations are to achieve organizational goals. Most organizations
seek to achieve profit or surplus. The function of managers is to establish an environment in
which people in the organization can accomplish organizational goals. Since organizational goals
are achieved with the use or resources, and resources are limited, managers must help
organizations achieve their goals with the minimum of resources or accomplish as much as
possible with the available resources. This requires a systematic process and use of knowledge
and theory. The use of management theory helps managers accomplish organizational goals more
effectively and efficiently.

Efficiency (what is efficiency?)

Effectiveness (what is effectiveness?)

Theory alone however is not enough. The 21st century organization is facing challenges that
make management a challenging task. Experience, tact, creativity and innovation are essential
ingredients of the 21st century organization manager. Globalization, technology, and other
environmental challenges make the function of management quite challenging. In managing the
organization today, theory helps a great deal. However, you need more than theory to tackle the
challenges.
Managers also face a challenging external environment. The complexity the size and variability
of this external environment requires a systematic way of dealing with it. Not only do managers
need an understanding of this external environment, through knowledge of existing theory, they
must also apply the theory if they are to deal with the complexity and variability effectively. And
since we are in a competitive environment, and competition is using knowledge (or theory) to
deal with the challenges of the external environment, failure to use the theory leaves one at a
disadvantage.
The internal environment is also a challenge to the management of the organization. The modern
employee and his demands must be satisfied. His or /her need for a variety of needs, his
variability and diversity, his knowledge and goals, require a more systematic management, using
theory. The processes such as conflict and stress that abound in a modern organization require
theory.
THEORIES OF MANAGEMENT
PRE-CLASSICAL PERIOD

During this period management theory existed basically as set of concepts and principles used in
organizations by managers to achieve efficiency and effectiveness
The Roman Empire

The extensive bureaucracy of the Roman Empire could not have been maintained in such a form
and for such a long time without the application of a management theory that we know today.
The Chinese Empire
The construction of the Great Wall of China could not have been accomplished without the
sophisticated administrative and bureaucratic structures we know today.
The Pyramids of Egypt
The pyramids of Egypt could not have been completed without sophisticated organization
practices and structures of the modern period.
The Catholic Church
The Catholic Church has also practiced many elements of classical theories for almost two
thousand years.
THE CLASSICAL THEORIES

The classical theories were developed in three streams/approaches namely:

a) The administrative theory
b) The theory of bureaucracy
c) The scientific management theory
The Theory of Bureaucracy
It was developed by sociologists who took a relatively scholarly descriptive point of view. The
most famous of those sociologists was Max Weber (1864 1920) who was a German
Sociologist. He published most of his works towards the end of the 19 th Century. Max Weber
identified the following as the main characteristics of bureaucracy:
Labor is divided so that the authority and responsibility of each member is clearly defined.
Offices or position are organized in a hierarchy of authority resulting in a chain of command.
All organizations members are to be selected on the basis of technical qualifications through
formal examinations or by virtue of training or education.
Officials are appointed not elected.
Administrative officials work for salaries and are career people.
The officials are separate from owners
The officials are subject to strict rules and controls regarding the conduct of their official
duties. Those rules are impersonal and uniformly applied to all people and cases.
The above specifications by Max Weber were necessary because during this period and before,
most organizations were managed on a personal family like basis. Employees were loyal to an
individual rather than to the organization or its mission. The dysfunctional consequences of the
practice were that resources were used to realize individual desires and goals rather than
organizational goals and needs. Employees in effect owned the organization and used resources
for their own rather than to serve customers and organizations.
Max Weber envisages organizations that would be managed on an impersonal basis. He called
this form of an organization bureaucracy. Max believed that organizations that exhibited the
characteristics that he described would be more efficient and adaptable to change.

Evaluation
(1)

Most of the characteristics described by Max Weber truly describe an ideal organization.
They described what should be rather than what is. However, to the extent that
organizations aspire to achieve the characteristics described by Max Weber, their efficiency
and effectiveness can be maintained.

(2)

Some of the aspects envisaged by Weber, however, have sometimes taken on a negative
meaning e.g. being associated with endless rules and red tape.
Administrative Theory

This theory was largely developed by Henri Fayol (1841 1925) who was a French industrialist.
He described a number of management principles that go towards capturing the entire flavor of
the administrative theory of management. Some of those principles are:
i) Division of work (or specialization)
One should work at activities in which he/she has comparatively higher skills. This should
lead to higher productivity.
ii) Authority and responsibility
Authority is right to give orders. Each person should have an appropriate authority to go
with the given responsibility. Responsibility is the task to be accomplished.
iii) Discipline
There must be respect and obedience to the rules and objectives of the organization.
iv) Unity of Command
To reduce confusion and conflicts each member should receive orders from and be
responsible to only one superior.
v) Unity of direction
An organization is effective when members work together towards the same objective.
vi) Subordination of individual interest to general interest
The interests of one employee or group of employees should not prevail over that of the
organization. Rather, the general interest must be maintained as paramount.
vii) Remuneration of personnel should be fair not exploitative, and should reward good
performance.
viii) Centralization
A good balance should be found between centralization and decentralization.
ix) Scalar Chain
There is a scalar chain or hierarchy dictated by the unity of command linking members of the
organization from the top to the bottom.
x) Equity
Kindliness and justice, largely based on predetermined conventions, should prevail in the
organization.
xi) Stability of tenure of personnel
Job security should reward good performance.
xii) Initiative
A manager who has initiative, and can get others junior to him to do it, is far superior to the
one who does not have this ability.
xiii) Esprit de corps

Unity is Strength- superior performance comes from working together; thus, everyone in
the organization should be encouraged to work together and have a sense of belonging.
xiv) Technical ability
Technical ability predominates lower down the ladder and management ability higher up.
Fayol emphasized the importance of planning, organizing, commanding, coordination and
controlling in organizations. Fayol recommended rational selection of and training of workers
together with professional training for managers.
Evaluation of Administrative theory
1.

The principles of administration as postulated by Henri Fayol fail to be universal truths.

2.

The principles lack scientific derivation and verification.

3.

The administrative theory is power centered. It is thus in philosophical conflict with those
who desire limited individualism.

4.

Administrative theory suffers from the dysfunctions of bureaucracy such as rigidity,

impersonality, and excessive categorization.

5.

Administrative theory suffers from superficiality, oversimplification and lack of realism. It is

satisfied with theoretical rather than actual.
However, as a theory of organization, the Administrative theory is critical because:
(i) It recognizes the need for:

Specialization

Unity of command

Discipline

Separation of individual and organization interest

(ii) It also introduces essential principles that even today lead to organization efficiency.
Scientific Management Theory
First developed by Fredrick W. Taylor (1856 1915) a mechanical engineer in the United States
the Scientific Management can be defined as:

The application of scientific method of study, analysis and problem solving to organizational
problems.
Or

A set of mechanisms or techniques for improving organizational problems.

Scientific Management focuses its unit of analysis on the physical activities of work. Scientific
management deals with the relationship of a worker and his or her work. Thus, this is emphasis
on man-machine relationships with the objective of improving performance of routine, repetitive
productions tasks.
Scientific management advocates for an empirical detailed study of each job to determine how it
could be done most efficiently.
The basic assumptions of scientific management theory are:

Improved results in organizations will come from the application of the scientific
methods of analysis to organizational problems. In other words, the scientific

management approach holds that scientific solutions to problems of management of

organizations are superior to those of other approaches.
Scientific management focuses primarily on work itself and not on the particular
person doing the work.
Each worker is assumed to be a classical economic man-interested in maximizing
his monetary income. The complications of emotional and social actions and reactions of
persons in organizations are not emphasized.

The basis principles of scientific management as expounded by Fredrick W. Taylor are as

follows:

Develop a science for each element of mans work in order to maximize the
organizations output.

Scientifically select and then train, teach and develop the worker.

Management should heartily cooperate with the workers so as to ensure all the work is
being done in accordance with the principles of science.

There is almost equal division of the work and responsibility between management and
the workers. The management should take over all work for which they are better fitted
than the workers, and the workers should do the work for which they are better fitted.

Application of the piece rate principle: This is the principle by which workers are paid
by piece rates on the basis of standards set by motion and time studies rather than on
other basis. Piece rates are effective in motivating workers. Tailors piece rate system
was called the differential piece rate system. Under this system, workers were paid a low
piece rate up to a standard (a standard was based on a first class man performing under
average conditions). At higher levels of output the worker was paid a hire rate.

Tailors recommendations were designed to reduce the inefficiencies and the wastefulness of the
past through practicing scientific rather than rule of thumb methods.
Evaluation of the Scientific Management Theory
The basic problem with the scientific management theory is that it assumed man to be purely an
economic man interested only in the satisfaction of his basic needs. His rationality and
motivation were purely financial/ materialistic. These assumptions were not realistic and man
was motivated by more than his basic needs as later proved by the neo-classists.
Comparison of the classical theories
i) The theories were mainly developed during the early part of the 20th century.
ii) The three streams were formed on similar assumptions about organizations organizations as
a structure of relationships of human beings with goals, objectives, roles, activities, power etc
that exist when persons work together.
iii) Their main goal was to find out what needs to be made to organization structures and
relationships to improve efficiency in the organizations.
iv) They considered the environment to be either static or to have an insignificant role in
organizational efficiency
However the three approaches had the following dissimilarities:

i) They were developed by separate groups of writers working totally independently of each
other:
ii) Bureaucracy developed mainly by sociologists who generally took a scholarly point of view
iii) Administrative theory and scientific management developed by writers who were practicing
managers; they were not merely content at describing organizations, they prescribed practical
purposes for better organizational performances.
iv) Administrative theories focused on overall relatively macro aspects of organizations. The
scientific management theory looked at the micro aspects the worker, and the foreman.
Bureaucracy also looked at the macro aspects of the organization.
THE NEO-CLASSICAL THEORIES

The Hawthorne Experiments: By Elton Mayo

Carried out between 1927 and 1933 at the Chicago Hawthorne plant of the Western Electric
Company. Four studies were done namely:
1 The illumination studies
The objective of this experiment was to determine the relationship between the level of
illumination and worker productivity. It was expected that worker productivity would increase
with increasing levels of illumination. The studies failed to prove any relationship between
worker productivity and level of illumination.
2 The Relay Assembly Test Room Studies
The objective of this study was to determine the relationship between worker productivity and
improved benefits and working conditions. The experiment also wanted to find out whether there
were other factors that influence productivity and worker behavior. The studies found out that
there was no cause and effect relationship between working conditions and output. Rather,
there were other factors that affected workers output such as his/her attitudes and supervisor
behavior.
3 The interviewing Program
In this Experiment the employees were interviewed to learn more about their opinions with
respect to their work, working conditions and supervision. The interviews sought the views of
the employees on the factors that could lead to increased productivity. The interviewees
suggested that the following other factors could affect their productivity:

Psychological factors help determine whether a worker is satisfied or dissatisfied in any

particular work situation
The persons need for self-actualization determines his/her satisfaction in the work.
A persons work group and his relationship to it, also determines his/her productivity.

4 The Bank Wiring Room studies

This experiment sought to study the effect of group influence on workers productivity. The
researchers found out that an informal grouping and relationship was a critical factor in the
workers productivity. The informal group determined the groups productivity, and functioned
as a protective mechanism (served both for internal and external purposes).

The Hawthorne Experiments concluded that:

i An industrial organization is a socio technical system. The socio part is the human aspects that
need to be taken care of in order to increase workers productivity and the technical system
is the physical aspects that also need to be improved.
ii Employee attitudes and morale are also important as determinants of productivity.
iii Other factors include workers personality and supervisors behavior. These two also affect
workers attitude and morale.
iv A workers social group has a prevailing effect on his or her attitude and productivity.
McGregors Theory X and Theory Y
McGregor proposed two sets of assumptions while motivating a worker; the theory X and theory
Y assumptions. A managers behavior towards his workers and his management style will differ
based on the assumptions guiding his behavior.
Theory X assumptions
i) The average person dislikes work and will avoid it if possible.
ii)

Because of this dislike for work, the workers must be directed, tightly controlled and
pressured to get them to work towards organizational goals.
iii)The average person wants security, avoids responsibility and has little ambition.
Theory Y assumptions
i) The average person does not dislike work
ii) If a person is committed towards a set of goals, he will work towards them without an
external control.
iii)Goal commitment follows from the satisfaction of a persons desire to achieve
iv)The average person can learn to accept responsibility. Lack of ambition is not a basic human
characteristic.
v) Creativity, ingenuity and imagination are human characteristics that are unduly dispersed in
the populations
Modern organizations only partially tap the potential of its workers.
Maslows Hierarchy of Needs
Abraham Maslow was born in New York in 1908: He trained as a psychologist and became an
academician. He identified five distinct needs of human being arranged in a hierarchical order.
He argued that the needs must be satisfied in that order or they will not motivate. A person had to
satisfy the needs at the lower levels first before he could move up the hierarchy. In ascending
order the five levels in Maslows hierarchy of needs are;

Physiological needs; Hunger, thirst, sleep; only when these basic needs are satisfied do other
needs begin to emerge.

Safety needs The desire for security and protection against danger.

Social needs The need to belong to gain love and affection to be in the company of others
especially friends.

Esteem Needs These reflect a persons desire to be respected esteemed- for their
achievements.

Self- actualization needs Self-actualization is the need to achieve ones full potential. This
may vary from person to person and indeed may vary over time. For this reasons self
actualization is a continuously evolving process throughout a persons lifetime.

Mary Parker Follet

A philosopher and political scientist; was also a social worker among the poor in Boston
Emphasized the importance of subordinating individual freedom to that of the group
Stressed the importance of democracy in decision making by involving all in order to
find a solution
Recommended the use of power with rather than power over.
Observed that;
Power cannot be delegated but authority can. Power is the capacity to get things
done. Authority is the right to give orders.
Power should be exercised with rather than over. Power over is dominance or
control, based on force. Power with is a jointly developed power.
She emphasized that power is a basic to management especially when used with.
Defined conflict as the difference in opinion or interests. She emphasized that
conflict cannot be avoided, and therefore must be used to manage organizations.
Noted that there are three ways of managing conflict:
Dominance one side wins over the other
Compromise each side gains something to settle the conflict; also each side
loses something. In both dominance and comprise, the basic causes of
conflict is not settled. Follet recommends a third way.
Integration of desires. In this way a solution that fully meets the goals of
each party in a dispute is found. Both parties get what they want. Neither
party gives up anything. Integration lets the parties creatively discover
alternatives that satisfy both parties in conflict. In integration, conflict is used
to creatively discover alternative that satisfy both parties.
Follet also brought a new way of looking at leadership. She defined a leader as one with
a vision of the future and can articulate the common purposes towards which the
organization is striving. The leader focuses the energies of people towards that purpose.
A leader not only knows the technical aspects of his job, but also understands the total
situation and the relationship among its many parties. Leaders also train and develop their
followers.
The basic elements of the Neo-Classical theories were:
i Individual needs. Recognizes the existence of, and the variability of individual needs, and
characteristics e.g. feelings, emotions, and perceptions.
ii

Work Groups recognizes the existence and the importance of informal groups in
organizations.

iii Participatory Management emphasizes the need of involving employees in decision making
especially on things that affect them.

Summary of the Neo-Classical Theories

1) Organizations are complex social systems - with both formal and informal structures.
They are not mechanical units with inert objects which need only neat rules and
structures (explained by administrative and the theory of bureaucracy) and purely
economic incentives proposed by Taylor in his scientific management theory.
To control the people you need to take into account

Social needs of human beings

Their other needs such as participating in decision making, self-actualization

Their diversity e.g. some are x and others are y.

2) Human beings have emotional as well as economic needs. Organization need to be

designed in such a way as to enable workers to meet both their material and non material
needs. Only in this way will the workers perform efficiently and effectively on the best
interests of the organization.
3) Importance of leadership and communication. The type and quality of a leader is also a
contributor to organizational success (Mary Parker Follet). Communication is also key to
success - amount of information and the way it is communicated.
THE CONTINGENCY THEORIES

Contingency theories basically reject the one best way approach to management and
organizational structure. The structural and management styles adopted are dependent
(contingent) on the situational (contextual) variables facing the organization. The contingency
theories relate to how the organizational structure adjusts to fit with both the internal
environment such as work technology and the external environment such as economic or
political/legal. Contingency means that one thing depends upon another thing or that one
characteristic depends upon another characteristic. What works in one setting may not work in
another setting. There are no universal principles that apply to every organization. There is no
one best way. The most efficient organizational structure may be contingent upon the size,
technology or strategy and since organizations are open systems, its environment.
The main contingency variables are: Technology, Environment, Size, Strategy, Culture and
Growth.
MODERN THEORIES

Total Quality Management Principles (TQM)

These principles were first developed in the 1940s by Edward Denning. Denning emphasized
the importance of employees in achieving high quality. He described TQM as empowering,
energizing, and enabling employees to work with one another. He transplanted those ideas to
Japan after the end of World War II. By the 1970s Japanese products were flooding markets
around the world.
By the 1980S, the TQM philosophy was consolidated into the following principles.

1 TQM (Meaning of) a company wide effort that includes all employees, suppliers and
customers, and seeks to continuously improve the quality of products and services to meet
customer expectations.
2 Under TQM employees are encouraged to participate in the improvement of quality and to find
and solve problems that affect productivity.
3 Customer focus: The entire company is directed towards customer satisfaction
4 Strategic Planning and Management: Managers must make long-term commitment to
improving the quality of their product
5 Continuous Improvement: Managers should not expect their companies to reach high quality
productivity levels over-night. A step by step approach is much more realistic.
6 Empowerment and Teamwork: Since quality is attained through all employees, and not just
managers, a great deal of teamwork among all workers and across all levels of the company
must occur. Such teamwork is required not only vertically (i.e. among top, middle, and
lower, level managers and employees) but also horizontally (i.e. within and across
departments). In additional inter organizational team work between the company and its
suppliers is needed to fully integrate suppliers capabilities with those of the company.
Peter Drucker (1995)
Druckers main contribution to management theory is in three areas namely:
1

Ways of evaluating management

According to Drucker management should be evaluated in four other dimensions in addition to
the traditional one of goal achievement namely;
i)Purpose and Mission
Management exists to enable a business achieve its objective. The objective of a business
is to supply goods and services using its resources to consumers at a price the consumers
are willing to pay.
ii) Productive work and worker achievement
A business accomplishes its performance through work. Work is performed by workers.
Making the worker work is a very important task for management; it implies
consideration of the human resource as human beings and not as things. It means
recognizing the worker as having a personality, and thus requiring responsibility,
motivation, participation, satisfaction, leadership, status and function.
iii) Social Impacts and Social Responsibilities
Every organization is part of society, and it exists for the sake of society. To produce
economic goods and services, the business has to have impacts on people, on community,
on society and on the environment. It has to have impact on the community as a source
of jobs, tax revenues, waste products and pollutions. It has an impact on the environment
in terms of physical, geo-physical and biological negative and positive effects. The
business has therefore got to be evaluated on the basis of its impact on people,
community, society and the environment, thus being concerned with the quality of life of
community.
iv) The Time Dimension

Management has to consider both the present and the future: both the short run and the
long run. Where the future and the present are not both satisfied, where their
requirements are not harmonized, or at least balanced, the interest of the business is
endangered, damaged or destroyed. Thus management has the responsibility of ensuring
that the present is not only efficiently managed but that efficiency is harmonized with the
future.
v) Administration and Entrepreneurship
Administration means getting the most out of what already exists. Entrepreneurship
means creating, innovating and bringing new things for a better tomorrow. But to create
a better tomorrow begins by making todays business successful. Thus the job of a
manager is making todays business successful in terms of administrative and economic
efficiency thus ensuring the success of the same business tomorrow. Thus he is
concerned with the efficiency of todays and tomorrows and therefore he/she creativity
and innovation to create better ways to enable survival for tomorrow.
2 Druckers other contribution is the philosophy of management by objectives. This philosophy
emphasizes that senior managers should establish long range goals. Lower level managers
should actively participate in setting those goals. In addition each manager should set his/her
own goals. Each managers goals become the source of self control of his performance
3 Druckers other contribution is his proposals about what is likely to happen in the future (until
about 2010). For him the future (i.e. 21st Century first decade) there will be:
i

A rise in alliances globally linked by technology

ii

A compelling need for decentralized organizations in an increasingly uncertain

environment.

iii

An increase in the use of teams in organizations

iv

An increase in the number of knowledge workers and continued decline in blue

collar workers.

The evolution of society into three sectors: business; government; and non-profit
the later will be interested only in social development. The Non-profit sector
will be characterized by volunteer services.

vi

A world economy in which world markets will become more important than
domestic markets.

The challenges facing Management Today (Early 21st Century)

1

The technological and human components of work are inextricably blended.

Jobs are less tightly defined and programmed.

Contingent workers comprise a significant proportion of the work force.

Customers influence what is performed within the organization and the standards applied to
evaluating that work.

Teams rather than individuals produce the basic unit of work.

Organizational charts fail to capture the network of influence and relationships that characterize
the workplace.
The challenges that will face management in the near future

Knowledge workers will not have a traditional contractual relationship with employers.
Instead they will rent their professional skills and knowledge on a freelance basis to different
companies at different times.

The corporate headquarters will evolve into heart centers, where emotional intelligence fuels
creativity, innovation, and entrepreneurial spirit.

Downsizing, upsizing, rightsizing, growth, and stabilization all will be welcome forms of
sizing the companies. People will have coping mechanisms that will prepare them for any
shift.

In the future, productivity will be driven by speed and efficiency rather than the staff hours
dedicated to a project

Internet speed workplaces will radically transform the world of work, making work across
multiple time zones and irregular schedules more and more common.

People wont work for organizations where they dont get a share of the profits and where
work/life balance is not a given.

Companies will no longer decide which benefits an employee needs. Instead employees will
log on to their companys website to customize their benefits programs.

People will feel an increasing ownership of their destinies, lives and careers; living skills will
be just as important as professional skills.

The boundaries between work and school will blur. Learning will be centered around
professions and trades, and there will be more mentor/apprentice relationships with internet
based coaching provided by people one has never met.

A digital divide will emerge separating employees who are tech-savvy and those who arent.
Smart companies will invest more in human capital and become virtual universities to narrow
the gap.

The fortune list of companies will become less of an economic force. There will be new
forms of stock trading, where businesses will be valued according to their contributions to the
local and global communities.
Importance of Managers/Management in an organization
Management is the;

Most strategic resource:- enables the organization to formulate, implement, and achieve its
goals
Most expensive in terms of societys capital and the employers direct investment
Managers determine the efficiency of other organizations resources, workers, physical
resources, reputation, financial and organizational resources.

Where a business reaches a certain size, in terms of horizontal, vertical, or spatial complexity,
when a variety of tasks have all to be performed in cooperation, synchronization and
communication, then a business needs managers and management.

Therefore management is an indispensable resource in any organization.